Rise of Advanced Analytics and Dashboards in Insurance Distribution

Lack of comprehensive business insights is a common bottleneck for the insurance industry. For example, insurers often cite lack of data driven decision-making insights on fronts like sales performance, compensation, contest, and distributor retention management. Advanced analytics and detailed dashboards prove essential to drive revenue growth in this context.

Advanced analytics spearheads the inevitable transformation of insurance distribution from its erstwhile operational aspect to that of a strategic role. This change management journey starts from Digital Distribution Transformation, which facilitates access to such data-driven decision-making possibilities.

Detailed business insights are essential if insurers are to survive in the new digital and distribution ecosystems. These developments rely on machine learning, predictive analytics, extensive data integration, third party data sources, and real-time data visualization to create extensive avenues for growth.

Drivers of revenue growth

Extensive analytical capabilities enable insurers to zero in on new business growth opportunities with the help of data driven decision-making capabilities. In conjunction with comprehensive dashboards, advanced analytics provide insurance leaders with access to real-time visibility of key performance metrics.

Advanced analytics and dashboards help insurers to better understand customer needs and behavior. This can be in the form of data analysis results based on demographics, social media activity, or customer interactions. Such evaluations aid the creation of targeted marketing campaigns and customized products that suit each customer’s needs. Identification of new revenue streams is another capability that accompanies such access.

Data-driven insights improve distribution channels’ performance, efficiency, and profitability. For instance, top leadership benefits significantly from sales performance dashboards that aid evaluation across different dimensions. At the same time, sales heads gain from channel-wise sales performance insights that drive suitable strategy pivots.

Dashboards can also be useful to reveal process optimization, revenue, and cost reduction possibilities. Or these can be in the form of distribution intelligence into conversion rates, loss ratios, or compensation efficacy.

Recruit and manage right

Insurers can zero in on effective distribution channels and recruitment strategies with the help of advanced analytics. A case in point is the use of correlations between distributor performance and recruitment data for future recruitment strategies.

Dynamic market conditions mandate the need for a “segment of one” distribution partner strategy. It calls for KPI-driven partner management capabilities, which is advanced analytics’ forte. Rewards for profitability that account for aspects like success rates or linked targets are a notable example of how to drive such differentiated incentives.

The “segment of one” distributor approach extends to distributor efficiency improvements. Insights into distributor performance can be leveraged to identify weak areas. Insurer support in the form of better information access, training, and support will increase producer performance in most cases.

Dashboards and advanced analytics also go a long way in retention of ideal partners. For instance, many C2L BIZ clients rely on dashboards for proactive partner management. This includes timely alerts and resolutions to address the concerns of dissatisfied partners. Or such proactive measures can be in the form of better incentives based on an analysis of the partner’s percentage of competitor business.

Ensure the right advice

A lack of information and product portfolio knowledge often results in agents making unsuitable insurance policy recommendations. As newer entrants like Insurtech revolutionize the field with customized recommendations, this proves costly for entrenched players.

Advanced analytics drives accurate financial need analysis, detailed sales illustrations, and tailored insurance products that meet the customer’s protection needs. It improves conversion rates, customer satisfaction, and cross-selling possibilities. The agent’s capabilities to comprehensively address customer needs build long term customer loyalty.

At the same time, agents can identify higher risk customers in real-time based on analysis of available data from internal and external data sources. Dashboards also allow insurers to monitor control policy mis-selling instances in a timely manner.

Enhance Underwriting capabilities

Underwriting capabilities derive significant advantages with the power of advanced analytics and dashboards. These technologies enable insurers to make real-time underwriting decisions for immediate corrective actions.

Leading insurers rely on predictive analytics to weigh in on risk factors like demographics and claims history. This ensures suitable coverage and premium adjustments for each client based on their risk profile. Such analytical capabilities deliver significant accuracy, revenue, and efficiency improvements to underwriting functions.

Dashboards deliver end-to-end insights into underwriting optimization possibilities. A case in point is the detection of underwriting workflow inefficiencies that lengthen application processing windows. Another example can be the identification and resolution of underwriter issues that create higher claims rates.

An experienced Insurtech partner like C2L BIZ is the ideal choice to advance your business’ advanced analytics and dashboard creation needs. With customer implementations that span across 12 countries, C2L BIZ has successful relationships with over 40 leading insurance carriers.

Contact us on sales@c2lbiz.com for a comprehensive roadmap for advanced analytics and dashboard implementation that meets your insurance business’ needs.